Data extracted from the accounting information system of TXC Corporation produced the following graph. The equation of the dashed line is y = $25x; the equation of the solid line is y = $200 + $5x. The solid line represents
A) Total variable costs
B) Total fixed costs
C) Total costs
D) Total revenues

Question

Data extracted from the accounting information system of TXC Corporation produced the following graph. The equation of the dashed line is y = $25x; the equation of the solid line is y = $200 + $5x.  The solid line represents
A) Total variable costs 
B) Total fixed costs 
C) Total costs 
D) Total revenues

Quizplus · Accepted Answer

The solid line represents the total costs, which includes both fixed and variable costs. The equation of the line includes a constant term of $200 representing fixed costs, and a variable term of $5x representing variable costs. Therefore, the correct answer is C, total costs.

Data Extracted from the Accounting Information System of TXC Corporation